Uncle Sam will be wading into the credit markets this week looking to borrow a total of $84 billion dollars. He'll kick-off his four-part borrowing spree by warming up with today's $10 billion 10-year inflation-index security sale before really hitting his stride with tomorrow's $40 billion 3-year note auction followed by Wednesday's sale of a $21 billion stack of 10-year notes. He'll wrap the whole thing up on Thursday with the sale of $13 billion worth of 30-year bonds.
Investors remain unsure whether the economic recovery glass remain half-full - or half empty - so this big round of government supply will likely churn the credit market up a bit. Even so, when the auction totals are finally tallied -- demand for each of these government debt offerings will probably prove to have been strong enough to support steady to perhaps fractionally lower mortgage interest rates.
Investors remain unsure whether the economic recovery glass remain half-full - or half empty - so this big round of government supply will likely churn the credit market up a bit. Even so, when the auction totals are finally tallied -- demand for each of these government debt offerings will probably prove to have been strong enough to support steady to perhaps fractionally lower mortgage interest rates.
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